diff --git a/src/index.ts b/src/index.ts
index c825991..e3f61ab 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -13,6 +13,7 @@ import {
   normalizeModuleFederationOptions,
 } from './utils/normalizeModuleFederationOptions';
 import normalizeOptimizeDepsPlugin from './utils/normalizeOptimizeDeps';
+import VirtualModule from './utils/VirtualModule';
 import {
   getHostAutoInitImportId,
   getHostAutoInitPath,
@@ -24,11 +25,21 @@ import { VIRTUAL_EXPOSES } from './virtualModules/virtualExposes';
 
 function federation(mfUserOptions: ModuleFederationOptions): Plugin[] {
   const options = normalizeModuleFederationOptions(mfUserOptions);
-  initVirtualModules();
   const { name, remotes, shared, filename } = options;
   if (!name) throw new Error('name is required');
 
   return [
+    {
+      name: 'vite:module-federation-config',
+      enforce: 'pre',
+      configResolved(config) {
+        // Set root path
+        VirtualModule.setRoot(config.root);
+        // Ensure virtual package directory exists
+        VirtualModule.ensureVirtualPackageExists();
+        initVirtualModules();
+      },
+    },
     aliasToArrayPlugin,
     normalizeOptimizeDepsPlugin,
     ...addEntry({
diff --git a/src/utils/VirtualModule.ts b/src/utils/VirtualModule.ts
index 6609e64..90f6123 100644
--- a/src/utils/VirtualModule.ts
+++ b/src/utils/VirtualModule.ts
@@ -3,8 +3,11 @@ import { dirname, join, parse, resolve } from 'pathe';
 import { packageNameDecode, packageNameEncode } from '../utils/packageNameUtils';
 import { getNormalizeModuleFederationOptions } from './normalizeModuleFederationOptions';
 
-const nodeModulesDir = (function findNodeModulesDir(startDir = process.cwd()) {
-  let currentDir = startDir;
+// Cache root path
+let rootDir: string | undefined;
+
+function findNodeModulesDir(root: string = process.cwd()) {
+  let currentDir = root;
 
   while (currentDir !== parse(currentDir).root) {
     const nodeModulesPath = join(currentDir, 'node_modules');
@@ -15,19 +18,19 @@ const nodeModulesDir = (function findNodeModulesDir(startDir = process.cwd()) {
   }
 
   return '';
-})();
-export const virtualPackageName = '__mf__virtual';
-if (!existsSync(resolve(nodeModulesDir, virtualPackageName))) {
-  mkdirSync(resolve(nodeModulesDir, virtualPackageName));
 }
-writeFileSync(resolve(nodeModulesDir, virtualPackageName, 'empty.js'), '');
-writeFileSync(
-  resolve(nodeModulesDir, virtualPackageName, 'package.json'),
-  JSON.stringify({
-    name: virtualPackageName,
-    main: 'empty.js',
-  })
-);
+
+// Cache nodeModulesDir result to avoid repeated calculations
+let cachedNodeModulesDir: string | undefined;
+
+function getNodeModulesDir() {
+  if (!cachedNodeModulesDir) {
+    cachedNodeModulesDir = findNodeModulesDir(rootDir);
+  }
+  return cachedNodeModulesDir;
+}
+
+export const virtualPackageName = '__mf__virtual';
 
 const patternMap: {
   [tag: string]: RegExp;
@@ -38,6 +41,7 @@ const cacheMap: {
     [name: string]: VirtualModule;
   };
 } = {};
+
 /**
  * Physically generate files as virtual modules under node_modules/__mf__virtual/*
  */
@@ -46,6 +50,37 @@ export default class VirtualModule {
   tag: string;
   suffix: string;
   inited: boolean = false;
+
+  /**
+   * Set the root path for finding node_modules
+   * @param root - Root path
+   */
+  static setRoot(root: string) {
+    rootDir = root;
+    // Reset cache to ensure using the new root path
+    cachedNodeModulesDir = undefined;
+  }
+
+  /**
+   * Ensure virtual package directory exists
+   */
+  static ensureVirtualPackageExists() {
+    const nodeModulesDir = getNodeModulesDir();
+    const virtualPackagePath = resolve(nodeModulesDir, virtualPackageName);
+
+    if (!existsSync(virtualPackagePath)) {
+      mkdirSync(virtualPackagePath);
+      writeFileSync(resolve(virtualPackagePath, 'empty.js'), '');
+      writeFileSync(
+        resolve(virtualPackagePath, 'package.json'),
+        JSON.stringify({
+          name: virtualPackageName,
+          main: 'empty.js',
+        })
+      );
+    }
+  }
+
   static findModule(tag: string, str: string = ''): VirtualModule | undefined {
     if (!patternMap[tag])
       patternMap[tag] = new RegExp(`(.*${packageNameEncode(tag)}(.+?)${packageNameEncode(tag)}.*)`);
@@ -54,6 +89,7 @@ export default class VirtualModule {
       return cacheMap[tag][packageNameDecode(moduleName)] as VirtualModule | undefined;
     return undefined;
   }
+
   constructor(name: string, tag: string = '__mf_v__', suffix = '') {
     this.name = name;
     this.tag = tag;
@@ -61,14 +97,16 @@ export default class VirtualModule {
     if (!cacheMap[this.tag]) cacheMap[this.tag] = {};
     cacheMap[this.tag][this.name] = this;
   }
+
   getPath() {
-    return resolve(nodeModulesDir, this.getImportId());
+    return resolve(getNodeModulesDir(), this.getImportId());
   }
+
   getImportId() {
     const { name: mfName } = getNormalizeModuleFederationOptions();
-
     return `${virtualPackageName}/${packageNameEncode(`${mfName}${this.tag}${this.name}${this.tag}`)}${this.suffix}`;
   }
+
   writeSync(code: string, force?: boolean) {
     if (!force && this.inited) return;
     if (!this.inited) {
@@ -76,6 +114,7 @@ export default class VirtualModule {
     }
     writeFileSync(this.getPath(), code);
   }
+
   write(code: string) {
     writeFile(this.getPath(), code, function () {});
   }